Purchasers plan toincrease online buying
By Staff -- Industrial Distribution, 11/1/1998
New york, N.Y.--Fifty-five percent of industrial purchasers expect to increase their buying via the Internet during the coming year, according to a new study conducted by Thomas Register and Visa U.S.A.Many managers polled at 3,000 firms say they are making online purchases more frequently, with nearly 40 percent buying online at least once a week. Companies are also spending more money on their Internet purchases, with over a quarter of those surveyed buying between $1,000 and $10,000 worth of products per month online. Another eight percent buy more than $10,000 of products each month via the Internet.
"These figures clearly demonstrate that, while there is a growing trend among companies to rely on the Internet for the day-to-day operation of their businesses, there are internal company procedures which have yet to incorporate the paperless aspect of purchasing online," says Julianne Garry, director of Internet marketing for Thomas Register. The firm provides online resources for manufacturing industries.
"As industrial buyers and business owners continue to streamline their own internal processes and as the development of standards and best practices for the secure use of payment cards become more adopted, we will see more purchasing conducted online,'' she says.
The primary reasons respondents gave for purchasing online were convenience, 24-hour availability, accessing information efficiently and quick-response time.
The top reasons for not purchasing online include security concerns, the need to receive invoices (purchase orders) before delivering payment, and concerns about product and service guarantees.
Features that survey respondents believe would increase online purchasing include more buyer protection and follow-up customer service by phone and/or e-mail. Survey respondents also reported wanting more technical security features.
When asked about their purchasing habits and preferences, those participating in the survey provided the following information:
* Sixty-eight percent currently pay by check, yet only 21 percent of those prefer to do so.
* Thirty-nine percent currently pay by company credit card, while 62 percent would like to do so.
* Only 20 percent currently use purchasing cards for payment, yet 48 percent of those would like to do so.
A majority of those polled said the availability of products online would have a favorable bearing on their decision to choose one vendor over another. I
Talkback
Related Content
Related Content
Sponsored Links
View All Blogs
